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In competitive times, experts warn veterinary clinics unclear about their ‘service value’ risk being left behind. By John Burfitt
There’s a case study concerning client loyalty that business advisor Darrell Hardidge believes perfectly sums up the business concept of service value.
“I know clients who have driven over 100km to take their pets to a particular vet, even when they have a range of local vets just around the corner,” Hardidge, lead consultant with Melbourne agency #1Reputation, says.
“They are willing to drive that distance to someone they trust and like dealing with rather than going to a vet close by they don’t think is caring enough. Service value is measured more in the emotional experience than the clinical experience.”
Hardidge, author of the book Having the #1 Reputation, believes when it comes to creating a prized service value, clients want an emotional connection, usually expressed through understanding, communication, empathy and friendliness.
According to the Journal of Service Theory and Practice by UK-based Emerald Publishing, service value is defined as “the perceived worth, utility, and importance of a service to a customer, determined by the outcomes it facilitates, the risks it reduces, and the costs it removes, balanced against the price paid”.
Veterinary surgeon and business consultant Dr Paolo Lencioni of APL Accountants says understanding service value is essential to getting the offering of a practice right.
“Knowing your service value is understanding the emotional and functional ‘profit’ a client gains after they have paid your invoice,” Dr Lencioni explains. “It is the realisation you are not just selling a clinical procedure; you are far more selling outcomes and peace of mind. That is the big value.”
Hardidge points to the importance of first impressions—from the condition of the practice car park to the cleanliness of the reception area. “Just remember you’re being judged and evaluated often before a word is spoken,” he says.
Dr Lencioni adds that even minor negative interactions can compound over time. “Every small negative experience can make clients perceive the cost as higher,” he says.
“Customer satisfaction has been something we have earmarked as being important over the past three years due to declining visits to vet practices. Think of this—price is about maths, but real value is a feeling.”
Unfortunately, this is where some practices falter. The clinic team may deliver highly competent medical care but fail to create the emotional connection clients are seeking, especially when the procedure involves a beloved family pet.
“If you don’t have a point of difference linked to emotion, then it’s all going to be based on your fees and that is a race to the bottom,” Hardidge warns. “The minute you find the team is treating clients as little more than random transactions, then you had better hope you are the only clinic in town.”
Customer satisfaction has been something we have earmarked as being important over the past three years due to declining visits to vet practices. Think of this—price is about maths, but real value is a feeling.
Dr Paolo Lencioni, APL Accountants
The consequences of missing the service value mark can be significant—even if a high investment is made in marketing to attract new clients. “Those same clients you are trying to attract will move on pretty fast if their experience of dealing with your clinic fails to meet expectations,” Hardidge says, further adding that determining service value is too often based on assumption rather than evidence.
“Don’t assume! You’ve got to research your market and your competitors. Talk to your customers to find out what they value about your practice, and what you can do to make them value you even more.”
Dr Lencioni reinforces this point, emphasising that because value is embedded in perception, it must be directly measured. And the best way to determine this is to ask clients.
In practical terms, this might mean implementing structured feedback systems such as post-visit surveys, online reviews and a range of engagement tools that allow practices to gather insights. In some cases, the most effective feedback can be gained by a casual chat with the client at the conclusion of the consultation.
One method APL Accountants uses is the profitdiagnostix.com platform that asks every client who visits a practice for a review score and a comment describing their experience. The system then analyses the feedback and categorises it, allowing practice owners to compare their feedback against other clinics.
Doing so, Dr Lencioni explains, enables practices to benchmark performance against professional averages as well as identify emerging trends.
“It allows veterinary practices to compare what their customers are saying versus the rest of the profession, and in real time,” he explains. “It moves management from guesswork to precision.”
Gathering vital data can also highlight other issues such as client loyalty, the number of annual visits, client growth, attrition, and the annual client spend.
But Dr Lencioni says such data is rarely about the medical aspects of the consultation. “It’s far more about specific friction points,” he explains, which often involve extended wait times, appointment availability, reception communication and fees. “A manager can address these and when you remove the friction points, the client stops focusing on the cost and starts focusing on the care.”
Hardidge says in establishing a strong service value, there must be a defined standard of excellence set for each member of the team. Without such clarity, service tends to be shaped by assumptions and interpretation.
“If a business owner doesn’t define to their teams what service excellence is, it’s left up to the opinions of the individual,” he says.
A full understanding of a practice’s service value can also have an impact on the wellbeing of the pet. Dr Lencioni believes knowing your service value is the best way to ensure clinical recommendations are followed once the pet is back at home.
“If a client doesn’t value the service your offer, they often won’t comply with the treatment plan,” he says. “Understanding your service value allows you to fix whatever problems exist in your offering, before they turn into lost clients.”
